In a bold move that is set to send ripples through Nigeria’s fuel market, Dangote Petroleum Refinery has announced a significant price cut for petrol. Effective from Saturday, 1st February 2025, the refinery reduced its ex-depot price for Premium Motor Spirit (PMS), better known as petrol, from N950 per litre to N890 per litre—a dramatic N60 reduction.
This announcement, made by the company’s Group Chief Branding and Communication Officer, Anthony Chiejina, could mark a turning point in Nigeria’s fuel pricing. Marketers who purchase petrol from Dangote Refinery will now source the fuel at a much lower cost, and while they’ll still add transportation fees and their profit margins, it’s expected that the retail price at filling stations could fall from approximately N1,000 to around N950 per litre.
This price cut comes as a direct response to the encouraging developments in global energy markets, including the recent dip in international crude oil prices. It follows a brief period of rising prices, as Dangote had only increased its gantry price in mid-January, pushing rates from N899.5 to as high as N955 per litre.
Now, the price reduction is expected to have far-reaching economic benefits. Chiejina emphasized that this move is part of a larger effort to help reduce the overall cost of living in Nigeria. With petrol prices lowering, the cost of goods and services is likely to follow suit. In turn, this could provide a much-needed economic boost, benefiting consumers and businesses alike.
Dangote’s latest decision signals its commitment to Nigeria’s economic recovery and the country’s quest for self-sufficiency in refined petroleum products. The company’s refinery, one of the country’s largest suppliers of petrol, plays a critical role in the local fuel landscape. And with President Bola Ahmed Tinubu’s focus on making Nigeria an oil export powerhouse, Dangote’s price cut aligns with national goals of economic growth and stability.
As the dust settles, consumers can expect some relief at the pump—but the real question remains: Will other marketers follow Dangote’s lead, or will the battle for fuel prices continue? One thing is clear: this could be the beginning of a new era for Nigeria’s fuel market.
